Share this article
BlackRock’s New Tokenized Fund Brings TradFi, Crypto Closer: Bernstein
The launch of the BUIDL fund is significant because of the way in which the investment manager has brought in key ecosystem partners from both the TradFi world and the crypto sector, the report said.
By Will Canny
Updated Mar 26, 2024, 12:28 p.m. Published Mar 26, 2024, 12:26 p.m.
- BlackRock last week unveiled its first tokenized fund on a public blockchain.
- The investment manager has involved key institutions from both the TradFi world and the crypto sector.
- On-chain funds could be a new category of growth for asset managers, Bernstein said.
The launch of BlackRock’s (BLK) first tokenized fund on a public blockchain is significant because of the way in which the asset manager has brought in key ecosystem partners from both the TradFi world and the crypto sector, broker Bernstein wrote in a research report on Tuesday.
As part of a growing trend of digitizing mutual funds and securities on the blockchain, the investment giant last week officially unveiled its first tokenized fund on the Ethereum network,
Bernstein notes that while tokenized money market funds are not new, the launch of the BlackRock USD Institutional Liquidity Fund (BUIDL) is significant in the way the investment manager has “brought in key ecosystem partners from both the traditional world and the crypto world.”
“This would facilitate interoperability between both sides and would comfort more traditional customers to adopt on-chain funds, without major friction points,” analysts Gautam Chhugani and Mahika Sapra wrote.
The fund is represented by the blockchain-based BUIDL token, and is fully backed by cash, U.S. Treasury bills, and repurchase agreements, BlackRock said.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The investment manager said Securitize will act as a transfer agent and tokenization platform, while TradFi institution BNY Mellon is the custodian of the fund. Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks will also participate in the fund’s ecosystem.
This is the first major test case for institutional holders to experience the benefits of 24/7 instant settlements on a blockchain, with increased transparency and capital efficiency, and at a lower cost, the authors wrote.
The decision to use Ethereum as the public blockchain instead of using a private blockchain “allows for a wider design space for interoperability and programmability,” the report said, adding that tokenized fund redemption could occur on-chain with stablecoin integration.
On-chain funds could develop into a new category of growth for asset managers, and “crypto asset management could evolve from simple crypto accumulation via exchange-traded fund (ETF) products, to building on-chain multi-asset products with its own distribution and unit economics,” the report added.
Read more: Brevan Howard-Backed Tokenization Firm Libre Goes Live
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Turkey's Paribu Buys CoinMENA in $240M Deal, Expanding Into High-Growth Crypto Markets
With the acquisition, Paribu gains regulatory foothold in Bahrain and Dubai and access to the region's fast-growing crypto user base.
What to know:
- Paribu acquires Bahrain- and Dubai-based CoinMENA for up to $240 million.
- Deal marks Turkey’s biggest fintech acquisition and first international crypto M&A, the firm said.
- The move taps into the MENA region’s fast-growing crypto user base and supportive regulatory hubs.
Top Stories
